Even as Posco project opponents, including the left parties, observed ‘Black Day’ on Saturday, the State Government said the draft of the fresh MoU to be signed with the South Korean steel major would be ready in a month's time.
“The law Department has made some recommendations on the MoU with Posco-India. We are examining the conditions in the MoU. It will be sent to the Chief Minister's Office in a month for approval,” Chief Secretary Bijay Kumar Patnaik told reporters here.
The Government's MoU with Posco-India lapsed three years ago. The five-year MoU had been signed on June 22, 2005 for setting up a 12-mtpa steel plant near Paradip in Jagatsinghpur district at an investment of Rs 52,000 crore.
Asked whether a fresh MoU would be signed with Posco or the lapsed one would be revised, Patnaik said, “We are examining different aspects of the recommendations made by the law Department and will take a decision accordingly.”
Sources said the law Department has recommended a number of changes in the expired MoU. There would be a condition to employ local people, which Posco has agreed to. This apart, the Union Ministry of Environment & Forest (MoEF) has recommended to the State to delete the clause for swapping of iron ore in the revised MoU.
"We have taken the MoEF's suggestions into consideration," said a senior officer. Though there is no MoU in force, the State Government has already acquired about 2,500 acres of land for the proposed 8-mtpa steel mill of Posco in the first phase.
The Expert Appraisal Committee at the Centre has, meanwhile, recommended for renewal of environment clearance for the Posco project, raising hopes for an early start of plant construction by the company.